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Zomato will bring IPO: papers deposited with SEBI to raise Rs 8,000 crore, money was raised some time ago

Story Highlights
  • Infosage will sell Rs 750 crore worth of shares in Zomato
  • Its stock is up 2% today at Rs 5,040.

Food delivery platform Zomato has finally begun the process of launching an IPO. It has submitted papers related to the regulator Sebi on Wednesday. Through this, the company has set a target of raising 8 thousand crore rupees.

Beginning of the first step

On Wednesday, the company deposited the draft Red Hearing Prospectus (DRHP) with SEBI. This is the first step for any IPO. In this, full information of the company is given. SEBI will conduct a full study and thereafter it will approve the IPO. Previously Jomato completed its process and internal review on 22 April.

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After getting approval from SEBI, the IPO will be brought according to the market conditions. This approval of SEBI lasts for 1 year. That is, in 1 year, the company can get an IPO at any time.

Shortly before the name was changed

Zomato had recently switched from a private company to a public limited company. For this, he named Jomato Jomato Limited. The company started as Public Limited on 19 January 2010. Zomato raised an amount of Rs 1,875 crore before the IPO from Kora Management, Tiger Global, Fidelity, etc. a few months ago. This amount was raised at a valuation of 40 thousand crores. The valuation of Zomato is currently 45-60 thousand crore rupees.

Info’s share 18.4%

Info Edge holds 18.4% stake in Zomato. It invested Rs 4.7 crore in Zomato in August 2020. Now its valuation has come to Rs 7,270 crore. It also invested Rs 4,950 crore in December 2020. At that time the valuation of Zomato was estimated at 30 thousand crores. In a notice given to the stock market on Tuesday, InfoEase said that it will sell shares of Rs 750 crore in Jomato during the IPO.

Infose’s stock is trading up 2% at Rs 5,040 on Wednesday. At the same valuation, 10 investors have invested in Zomato.

Speed ​​in online food delivery

In March last year, due to the lockdown caused by Corona for the first time, its on-line food delivery had increased significantly. Jomato co-founder Dipinder Goyal said that the food delivery business is good business and is confident that the sector will grow rapidly after the vaccine. Zomato’s competitor Swiggy has also finalized raising $ 450 million from Softbank Vision Fund. This investment will be at a valuation of 40 thousand crore rupees of Swiggy.

2,486 crores revenue

Zomato reported revenue of Rs 2,486 crore in FY 2020. While its loss was Rs 2,451 crore. The company was started by Dipinder Goyal and Pankaj Chaddha in 2008 under the name of Foodbee. Later it was named Jomato. Other companies, including China’s Ant Financial, hold about a 20% stake in Zomato. Zomato has added 5 new members to its board. It has 4 women.

11 new unicorns made in the country in four months

The company’s IPO is coming at a time when 11 new unicorns were created in the country in the first four months of this year. Unicorns mean companies that have a valuation of $ 1 billion or more. Only 11 unicorns were produced during the entire year in 2020. Due to Corona, on-line services have also accelerated in digitization. India is considered a major country in the consumer market.

Apart from Zomato, there are many Internet companies that are preparing for IPO. It has companies like Policy Bazaar, Nayaka, Delahivari. Flipkart and Freshworks are also set to be listed in the US.

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